Vodafone-Idea, a major telecom company, experienced a significant rise in its stock prices on the Bombay Stock Exchange (BSE) today.
The company’s shares climbed by 4% to reach Rs 9.38 on Tuesday, marking a 10-month high.
This surge comes after the company’s shares had reached their peak since September 2022, although they had faced a decline since then.
Analyst Views
In line with reports from Business Standard, the respected rating agency CARE has upgraded Vodafone-Idea’s rating from stable to positive.
This adjustment was prompted by delays in the company’s fundraising plans. CARE’s analysis suggests that the company will receive support from its promoters, which will aid in executing their 5G program.
This move is anticipated to lead to growth in subscribers and revenue.
The Core Support
A significant reason behind the company’s stable rating is the backing of Rs 2000 crore from its promoter group.
However, the method of how this support will be provided, whether directly or indirectly, is yet to be finalized.
Recent Performance
Over the last six months, Vodafone-Idea’s share prices have surged by 24%.
Impressively, the company’s shares have rebounded by 65% from their lowest point of Rs 5.7 over the past year.
It’s noteworthy that after the midday rally on Tuesday, the company’s shares have slightly dipped to Rs 8.94.
